FedEx announced Friday it will commit to more than $3.2 billion in wage increases, bonuses, and American capital investment due to the recently passed Tax Cuts and Jobs Act.
“FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States,” FedEx wrote.
FedEx revealed in its statement that it will spend more than $200 million in increased compensation, about two-thirds of which will go to hourly workers, and the remainder will go to increases in performance-related incentive plans for salaried personnel.
FedEx also suggested it will contribute $1.5 billion to the FedEx pension to ensure that it remains “one of the best-funded retirement programs in the country.”
The shipping company also wrote in the statement that it will invest “$1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.”
The American economy continues to thrive under President Donald Trump. Reports suggested that an excess of one million Americans will receive a bonus of up to $3,000, thanks to the tax cut bill.
Home Depot announced Thursday that its workers can receive a bonus of up to $1,000 as a result of the Tax Cuts and Jobs Act.
Craig Menear, Home Depot’s chief executive officer, said in a statement released Thursday, “This incremental investment in our associates was made possible by the new tax reform bill. We are pleased to be able to provide this additional reward to our associates.”
Well over 100 American companies gave their employees as much as $2,000 in bonuses after President Trump signed the Tax Cuts and Jobs Act. Several corporations, such as AT&T, Comcast, and Nationwide, also increased their 401(k) match rate, raise their minimum wages, and increased domestic investment because of the Republican tax bill.
American unemployment claim benefits remain at a record 17-year low, and American consumer sentiment reached its highest level since 2000.
Meanwhile, former Democratic National Committee (DNC) chairwoman and Rep. Debbie Wasserman Schultz argued on Thursday that $1,000 in bonuses as a result of tax reform do not amount to much help.
Schultz said, “I’m not sure that $1,000 goes very far for anyone.”
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